*Amend approved application under the Multiple-Unit Limited Tax Exemption Program under the Inclusionary Housing Program for Woodstock Apartments located at 5515 SE Woodstock Blvd to decrease the number of restricted units (amend Ordinance 190760)

To ensure Portland has economically inclusive development and neighborhoods, the city requires that new buildings being constructed (with more than 20 units ) also provide Inclusionary Housing units (“IH Units”), restricted for 99 years under the Inclusionary Housing (“IH”) Program. In exchange for providing IH Units, developers receive some benefits, including a 10-year property tax exemption – typically on all residential units in the Central City, or on only eligible rental units restricted under the IH Program outside the Central City. On April 6, 2022 the Council passed Ordinance 190760 which authorized a 10-year property tax exemption for Woodstock Apartments. Under Ordinance 190760, the developer selected to provide 15% of the building’s 23 units, totaling three units, restricted to households earning no more than 80% median income for 99 years. Since the passage of the aforementioned Ordinance, the developers of the building have requested to amend their approved 10-year property tax exemption application in order to accommodate both a change in the composition of unit types and a decrease in the Project’s total units from 23 to 20 total units as well as to adjust the Project’s IH option to include reconfiguration of the building’s IH obligation into larger unit types. For the building associated with this amended ordinance, below are the options available to the developer in city code. The option selected by the developer is in bold. On-Site Units New Off-Site Units Existing Off-Site Units Fee-in-Lieu Units at 80% of Median Income 3 Units N/A N/A N/A Bedrooms at 80% of Median Income 3 Bedrooms N/A N/A N/A Units at 60% of Median Income 2 Units 4 Units 5 Units N/A Bedrooms at 60% of Median Income 2 Bedrooms N/A N/A N/A Units at 30% of Median Income N/A 2 Units 3 Units N/A No Inclusionary Units N/A N/A N/A $345,391 The developer selected the option to provide 15% of the building’s 20 units, totaling three units, restricted to households earning no more than 80% median income for 99 years. Using the option to reconfigure the building’s IH obligation into larger type units, the building’s original requirement of three one-bedroom units, which is 15 percent of the project’s total 20 units will be provided in one one-bedroom and one two-bedroom units, which is 10 percent of the project’s total 20 units, and will be restricted to households earning no more than 80 percent median income for 99 years. Original IH Unit Requirements (3 IH Units) Total Bedrooms in Original IH Unit Requirements IH Obligation utilizing Reconfiguration (2 IH Units) (3) One-bedroom 3 bedrooms (1) One-bedroom (1) Two-bedroom Because this building is outside the Central City Plan District, the tax exemption will apply to the IH Units. Overview of building and units for Ordinance No. 190760: 23-unit building at 5515 SE Woodstock Blvd Market rate units: 20 units IH Units: 3 units Studio One Bedroom Two Bedroom Three Bedroom Total - 23 - - Market Rate - 20 - - Restricted to 80% of Median Income - 3 - - Average Square Footage - 568 - - Largest Square Footage - 608 - - Smallest IH Unit - 556 - - Overview of building and units for Amended Application: 20-unit building at 5515 SE Woodstock Blvd Market rate units: 18 units IH Units: 2 units Studio One Bedroom Two Bedroom Three Bedroom Total - 17 3 - Market Rate - 16 2 - Restricted to 80% of Median Income - 1 1 - Average Square Footage - 568 801 - Largest Square Footage - 608 801 - Smallest IH Unit - 556 801 - Regulated restricted rents compared to new construction market rate rents in the same neighborhood: Studio One Bedroom Two Bedroom Three Bedroom Market Rate - $1,518 $1,971 - Restricted to 80% of Median Income - $1,450 $1,741 - Monthly Rent Difference - $68 $230 - Annual Rent Difference - $816 $2,760 - Over the 99 years of required rent restriction, market rents will only continue to increase at a faster rate compared to regulated rents. If this ordinance is not approved by City Council, the development will proceed without any IH Units. ORS 307.621 and City Code Section 3.103.060(B) state that PHB will take applications to City Council for approval in the form of an ordinance and deliver approved applications to the Multnomah County Tax Assessor. This action meets those requirements.

The City will pay the $1,700 application activation fee to Multnomah County, should the application move forward. This Ordinance approves a property tax exemption resulting in foregone tax revenue. The total estimated amount of the property tax revenue not collected for the 10 years of the exemption period is valued at approximately $22,101 in today’s dollars, assuming a four percent discount rate and a three percent annual assessment increase. This 10-year estimate includes taxes foregone by the City of Portland, Multnomah County and other entities which receive property taxes within Multnomah County. The reduced amount of property taxes to the City of Portland over the 10 years is roughly 33 percent of that amount, or $7,293. The City will still benefit from property taxes collected on the improved value of the land during the exemption period. Property Tax exemption value and foregone revenue for Ordinance 190760: Estimated total foregone revenue: $33,690 Estimated first year value of the tax exemption: $3,658 Estimated annual value of the tax exemption per inclusionary unit during the exemption period: $1,230 Estimated annual foregone revenue per inclusionary unit over 99-year restriction term: $113 Property tax exemption value and foregone revenue for amended application: Estimated total foregone revenue: $22,101 Estimated first year value of the tax exemption: $2,400 Estimated annual value of the tax exemption per inclusionary unit during the exemption period: $1,105 Estimated annual foregone revenue per inclusionary unit over 99-year restriction term: $112 Central City Plan District: Yes No Remaining 5-Year Cap: $12,332,601 Property Management: Not selected yet

As the largest taxing jurisdiction affected by the tax exemption programs, Multnomah County has approved the administration of the programs in order to meet shared affordable housing goals.